(810 ILCS 5/4-403)
(from Ch. 26, par. 4-403)
Customer's right to stop payment; burden of proof of loss.
(a) A customer or any person authorized to draw on the account if there is
more than one person may stop payment of any item drawn on the customer's
account or close the account by an order to the bank describing the item or
account with reasonable certainty received at a time and in a manner that
affords the bank a reasonable opportunity to act on it before any action by the
bank with respect to the item described in Section 4-303. If the signature of
more than one person is required to draw on an account, any of these persons
may stop payment or close the account.
(b) A stop-payment order is effective for 6 months, but it lapses after 14
calendar days if the original order was oral and was not confirmed in writing
within that period. A stop-payment order may be renewed for additional
six-month periods by a writing given to the bank within a period during which
the stop-payment order is effective.
(c) The burden of establishing the fact and amount of loss resulting
from the payment of an item contrary to a stop payment order or order to close
an account is on the customer. The loss from payment of an item contrary to a
stop payment order may include damages for dishonor of subsequent items
pursuant to Section 4-402.
(d) When a bank sends to its customer a statement of account
accompanied by items paid in good faith in support of the debit entries or
holds the statement of account and items pursuant to a request or
instructions of its customer or otherwise in a reasonable manner makes the
statement and items available to the customer or, in lieu of returning such
items, sends its customer a statement of account which includes the
identifying number of each item paid in good faith or otherwise
specifically identifying such items or holds such statement pursuant to a
request or instructions of its customer or otherwise in a reasonable manner
makes such statement available to the customer, the customer must exercise
reasonable care and promptness to examine the items and statement to
discover any items improperly paid by the bank over the customer's properly
lodged stop payment order and must notify the bank promptly after discovery
thereof. Failure of the customer to notify the bank within one year of
either receipt of the item improperly paid by the bank over a properly
lodged stop payment order or, in lieu of receipt of the improperly paid
item, receipt of a statement containing the debit entry for said item and
specifically identifying said item shall preclude the customer from
asserting against the bank the improper payment.
(Source: P.A. 86-583; 87-582; 87-1135.)